Since the first quarter of 2013, reserves for commercial loanshave increased each quarter, even as overall reserves steadilydeclined at commercial banks and savings banks.

That's according to research firm SNL Financial inCharlottesville, Va. In the second quarter, reserves for commercial loans totaled $26.90 billion, up from $26.57 billionin the first quarter and $25.20 billion in the 2013 secondquarter.

The increase in reserves could represent a move deeper into therisk pool as competition for commercial and investment loans heatsup, SNL Financial noted.

For commercial banks and savings banks with total assets of $1billion or more, reserve coverage for commercial loans represented1.11% of all loans in the second quarter.

Meanwhile, reserves for real estate loans, which includescommercial and residential real estate as well as constructionloans, have fallen dramatically over the past year, helpingguide down aggregate reserves across loan types, according to SNLFinancial.

For the second quarter, reserves for real estate loans totaled$51.34 billion, down from $54.29 billion in the first quarter and$68.60 billion in the year-ago quarter.

Some banks are willing to take on more risk as the competitionfor loans continues, said Steven Reider, president of Bancography,a banking consulting firm in Birmingham, Ala.

The decline in aggregate reserves across loan types while theyrise for commercial loans fits a general theme of increasedcompetition in the sector, he added.

For credit unions, charge-offs have stayed well below those ofbanks, according to Larry Middleman, president/CEO of CUBusiness Group LLC, a Portland, Ore.-based business lending andservices CUSO.

They stayed below the 1% charge-off rate for business loans,meaning less than 1% of total business loan balances, heexplained.

However, commercial bank charge-off rates went as high as 2.45%in 2009, Middleman noted. Overall, commercial loan dollars at banksdropped 10% between 2008 and 2011, and have now recovered to 2008figures.